The amount employers pay in national insurance is set to rise in next week’s budget to raise money for public services, Sky News understands.
Reports have suggested it could be increased by up to two percentage points and will – in part – be used to help fund the NHS.
A government source told Sky News: “There is a universal consensus that the NHS needs more money.
“That means asking businesses to help out.
“The choice is investment versus decline. She [Rachel Reeves] is choosing not to ask working people to pay the price for their [Conservatives’] failures.”
According to The Times newspaper, Chancellor Rachel Reeves is also expected to make a significant cut to the earnings thresholds at which employers start making national insurance contributions.
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The combined measures are expected to raise about £20bn and will represent the biggest tax rise in the budget.
The burden will reportedly fall entirely on the private sector, with public sector employers such as government departments and the NHS being reimbursed by the Treasury to avoid cuts.
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On Friday, much of the budget chat focused on Labour’s definition of a “working person”.
The party’s manifesto said it would not increase taxes on working people, including VAT, national insurance, and income tax.
This has prompted repeated questions about who the government considers to fall under that umbrella and therefore would not impose tax rises on.
During a broadcast interview at a Commonwealth summit in Samoa, Sir Keir Starmer told Sky News he does not consider people who have an income from assets such as shares of property to be working people.
“They wouldn’t come within my definition,” he said.
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Reacting to questions from journalists, Ms Reeves said the prime minister is a “working person”.
Speaking to LBC, she said: “The prime minister gets his income from going out to work and working for our country.
“He’s a working person. He goes out to work.”
Treasury minister James Murray told Sky News that “a working person is someone who goes out to work and who gets their income from work”.
Pushed further on whether a working person could also get income from shares or property, Mr Murray added: “We’re talking about where people get their money from, and so working people get their money from going out to work.
“And it’s that money that we’re talking about in terms of those commitments we made around income tax, around national insurance.
“That’s what’s important to focus on, where people are getting their money from, getting their money from going out to work.”
A British tourist being treated after a suspected mass methanol poisoning in Laos has died, according to UK officials.
Simone White, 28, from Orpington, Kent, fell ill after reportedly drinking “free shots” from a local bar in Vang Vieng – a resort popular with backpackers.
Four people had already died following the suspected poisonings – an Australian named Bianca Jones, 19, from Melbourne, as well as two Danish women in their 20s and a 56-year-old US citizen.
They are believed to have consumed drinks tainted with methanol, which is sometimes added to mixed drinks as a cheaper alternative to alcohol, but can cause severe poisoning or death.
“We are supporting the family of a British woman who has died in Laos, and we are in contact with the local authorities,” the UK’s Foreign, Commonwealth and Development Office (FCDO) said in a statement.
The FCDO said it was also providing consular assistance to other British nationals hospitalised in the incident, as well as their families.
Ms White was an associate lawyer specialising in intellectual property and technology and worked at the London office of the American law firm Squire Patton Boggs.
Her work involved general commercial matters, and contentious and non-contentious intellectual property law issues, according to the firm’s website.
Bethany Clarke, a friend of Ms White and a healthcare worker, also from Orpington, said a group of six people had been taken to hospital after drinking from the same bar.
She posted on a Laos Backpacking Facebook group to warn other travellers after the group fell ill.
“Urgent – please avoid all local spirits. Our group stayed in Vang Vieng and we drank free shots offered by one of the bars,” she wrote.
“Just avoid them as so not worth it. Six of us who drank from the same place are in hospital currently with methanol poisoning.”
‘Every parent’s very worst fear’
Australian Prime Minister Anthony Albanese confirmed to his country’s parliament that 19-year-old Bianca Jones had died after being evacuated to a Thai hospital from Vang Vieng.
Thai authorities confirmed that Jones had died of “brain swelling due to high levels of methanol found in her system”.
Her friend Holly Bowles, also 19, remains in hospital in neighbouring Thailand, Mr Albanese said.
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1:36
Laos methanol poisonings – what we know
Australian officials said “several foreign nationals” had also been victims of methanol poisoning
“This is every parent’s very worst fear and a nightmare that no one should have to endure,” Mr Albanese said.
“We also take this moment to say that we’re thinking of Bianca’s friend Holly Bowles who is fighting for her life.”
‘Her incredible spirit touched so many lives’
In a statement to the Melbourne Herald Sun newspaper, Ms Jones’ family paid tribute to her.
“She was surrounded by love, and we are comforted by the knowledge that her incredible spirit touched so many lives during her time with us,” the family wrote.
“We want to express our deepest gratitude for the overwhelming support, love, and prayers we’ve received from across Australia.”
The US State Department confirmed that an American had also died in Vang Vieng, and Denmark’s Foreign Ministry said two of its citizens had also died in “the incident in Laos”.
Neither would comment directly on a link to methanol poisoning.
The second named storm of the season will bring snow, rain and strong winds to parts of the UK this weekend, according to the Met Office.
Hundreds of schools are closed as the storm, named Bert, sweeps in, bringing freezing temperatures and snow over the weekend.
Wind gusts of up to 70mph are expected in some areas as well as the potential of flooding and travel disruption.
Heavy snowfall could bring further disruption to parts of the country while heavy rain is also likely over the weekend, the Met Office added.
Parts of southwest England including Plymouth and Exeter are under a yellow warning for snow until 3pm today, with 5-10cm predicted in higher parts of Dartmoor.
Wintry showers will continue in different parts of the UK throughout Thursday and Friday, amid warnings of snow and ice for much of Scotland, northern England and parts of western and eastern England and Wales between midday today and 10am tomorrow.
Met Office chief meteorologist Matthew Lehnert said: “A northerly airflow will continue to feed snow showers into Scotland over the next few days, with this reaching lower levels at times and bringing the potential for some travel disruption.
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“Overnight temperatures will drop below zero fairly widely over the next few days, which has resulted in some ice warnings, with further warnings likely through this week.”
More than 114 schools are shut in the Highland Council area today due to snow, including Inverness Royal Academy where pupils were told their prelim exams planned for the day would be rescheduled.
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Almost 40 schools in Aberdeenshire are also shut while many others had delayed openings, and in Moray around 12 were closed and others opened late.
It comes after more than 100 schools or nurseries were closed in Scotland yesterday because of the weather.
South of the border, 89 schools were shut in Devon today, 18 in Dorset and 60 in Cornwall, while in Wales around 10 were closed in Conwy, 18 in Denbighshire and two in Wrexham.
As Storm Bert hits the UK, areas where warnings are in place in the south and west are likely to be impacted by heavy rain on Saturday and Sunday.
Between 50-75 mm of rainfall is expected there on the weekend, while Wales and southwest England could see more than 100mm.
There is already a yellow warning for heavy snow on Saturday followed by a “rapid thaw” and rain on Saturday night in northeast and northwest England, the West Midlands, Yorkshire, and much of Scotland.
Met Office Deputy Chief Meteorologist, Dan Holley, said: “Storm Bert marks a shift to much milder air and wintry hazards will gradually diminish through the weekend, but heavy snowfall is expected across parts of northern England and Scotland for a time on Saturday, especially over higher ground, and warnings are in place.”
A man has been found guilty of murdering his “best friend” on Christmas Eve.
A jury of 10 men and two women heard Dylan Thomas, 24, killed William Bush, 23, in a “frenzied attack”in the Llandaff area of Cardiff last year.
Thomas had previously pleaded guilty to manslaughter by diminished responsibility but denied Mr Bush’s murder.
A trial at Cardiff Crown Court heard Thomas attacked Mr Bush “from behind” in his bedroom after he entered through the kitchen at the property they shared, owned by the defendant’s grandparents.
During the “sustained attack” Mr Bush “fled for his life” down two flights of stairs and onto the patio, the trial heard.
Mr Bush sustained 37 stab wounds in total, including 21 to the neck.
His cause of death was given as “multiple stab wounds to the neck and trunk”.
The defendant, who was wearing a blue t-shirt, attended the hearing via video link from a secure hospital.
The jury returned a unanimous verdict on Thursday afternoon after just over three hours of deliberation.
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Thomas, who was suffering from schizophrenia, had initially claimed he was acting in self-defence.
‘Clear thinking’
The court heard how Mr Bush was Thomas’s “only known real friend”.
During the trial, it was also heard how Thomas had been arrested “for trying to climb into Buckingham Palace” some weeks previously.
He also wrote to Elon Musk telling him he believed he had the ability to harness gravity.
The defendant was staying with his grandmother in Rhoose, the Vale of Glamorgan, on the night before the attack.
In the early hours of Christmas Eve, the jury heard Thomas had carried out an online search for the “anatomy of the neck”.
Thomas, who could not drive, enquired about getting an Uber to Tŷ Matthew in Llandaff at 3.31am.
Later that morning, his grandmother agreed to take him to the house after he told her he “wanted to walk the dog” and they left her home in Rhoose at 10.41am.
He had sent several messages to Mr Bush in the hours before the attack in which he said he needed to see him before Mr Bush went home to Brecon to spend Christmas with his family.
The prosecution argued there was “clear thinking on the part of Dylan Thomas”.
“This was a frenzied attack where Mr Thomas could only have had one intention and that was to kill Mr Bush,” said Gregory Bull KC, prosecuting.
But the defence argued Mr Bush’s schizophrenia lay “at the centre” of the case.
“He didn’t understand, because he was deluded. He believed, for whatever reason, that his best friend was threatening his life,” said defence barrister Orlando Pownall KC.
Thomas will be sentenced on Monday 16 December.
This breaking news story is being updated and more details will be published shortly.